All Forum Posts by: Chris Carollo

I've done a few deals like this.  Some things to consider.. 

Most banks are requiring a 6 month or longer seasoning period.

70% LTV seems to be the norm.

Have you looked into a developing a relationship with a local bank that will partner on both parts of the transaction?

It sounds like it could be a potentially good deal with some instant equity built in once you rehab. You could either do a cash out refi(as owner occupant) or a BRRR strategy and keep it as a rental. This would allow you to pull out some $$ immediately to move on to your next project.

I don't know much about your market but are others selling vacant lots and are people building them. Buying this to subdivide the land might be a long way to see some $$.  You could always put one of the lots for sale to test the waters. 

I also commend you for your goal of $200 Door/50 units but would challenge you on your thinking. I'd much rather have 25 units making $400 a door than 50 units making half that. Don't get caught up the volume of deal/properties vs the quality.  The monthly cashflow is the goal, not the number of doors you have!

Good luck!

+1 on Quickbooks. I spend about 30 minutes a month when I've got a rehab going on to enter everything in. 

Welcome to Investing! You've picked a couple great cities but I'd also consider Westchester, Darien and Woodridge. Have you met with Mortgage Broker to get a sense of what type of $$ you qualify for? With only 10k available be careful about finding a place that needs a ton of work as you'll quickly burn through it! Evaluate a ton of deals and when you find one that looks good don't be afraid to pull the trigger. Don't just jump on the first thing you find!!

While not exactly the same stone, here is a before/after a rental we just finished. Painted it white and sprayed the Fireplace doors with spray paint designed for high temps. The third photo is another property we redid a couple years ago. The stone ended up being a veneer and came off easily, just had to replace a couple pieces of drywall.

Hey everyone! I've been a Buy and Hold Investor that has built up a portfolio of primarily SFR. My goal is to move in to Commercial in the coming years utilizing a 1031 step up strategy. Can anyone talk about the immediate differences, what surprised them the most or what red flags to look out for? Basically I'm looking for any stories, good or bad from someone who has already done this.. Thanks!

I've never used them for a wholesale deal but for every other Real Estate Deal I use Klunk Law.  http://klunklaw.com/

I agree that ceramic, 12x12 or smaller would work best. Smaller as it's less likely to crack when something is dropped on it.  I would also make sure that the floor is prepped right if there is an existing finished floor. 

Isn't part of the BRRR Strategy to create instant equity? I'm finishing up a BRRR as we speak. House bought, Rehab done, Hopefully Rented this weekend. Refinance soon (need to season the property for 6 months). Once refinanced I should have almost all my money back on a 75% LTV and still see a couple hundred dollars per month positive cash flow. Between the 25% instant equity and cash flow this falls into the type of BRRR that I like to do.

How much equity will you have after its completed? You'll probably only be able to get 75% LTV financing..